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SWOT Analysis of PepsiCo

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Introduction According to the oxford dictionary a SWOT analysis is “a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.” PepsiCo is a leading multinational food and beverage company that owns several hundreds of brands such as Pepsi, Tropicana and Quakeroats. This is a report based on the SWOT analysis of PepsiCo. Strengths PepsiCo is a large global company that has many strengths and advantages. One of Its main strengths is that its product range is diverse; this means that it doesn’t rely on a few key products or seasonal sales and isn’t significantly affected by changes in customer tastes. PepsiCo also has an extensive distribution channel serving over 10 million stores a week I over 200 countries. (Strategicmanagementinsight.com.) One of the reasons why PepsiCo’s growth has been so successful is its approach to merging and acquisitions of beverage, bottling and snack companies. These merges have lead to the company not having to rely on the sales of a particular brand or product and mean that the company has 22 brands that contribute to its income. PepsiCo spent over $2 billion on advertising in 2012 this lead to an increase in their market share and their competitiveness. (http://www.pepsico.com) The firm also recognizes its role in society and gets very involved in charity work that has to do with education, recycling, water usage reduction, obesity fighting and other projects. This is done through its very own foundation, which increases the awareness of its brands name and customer loyalty. Weaknesses Even successful companies like PepsiCo have their weaknesses. Over 13 percent of PepsiCo’s business revenues come from Wal... ... middle of paper ... ...com. 2013. [online] Available at: http://www.cbsnews.com/8301-505123_162-44040677/good-news-pepsicos-indra-nooyi-solves-the-obesity-crisis/?tag=bnetdomain [Accessed: 5 Dec 2013]. Mindtools.com. 2013. SWOT Analysis - Strategy Tools from MindTools.com. [online] Available at: http://www.mindtools.com/pages/article/newTMC_05.htm [Accessed: 5 Dec 2013]. Pepsico.com. 2013. Brands You Love | PepsiCo.com. [online] Available at: http://www.pepsico.com/Brands.html [Accessed: 5 Dec 2013]. Sec.gov. 2013. Form 10-K. [online] Available at: http://www.sec.gov/Archives/edgar/data/77476/000119312512081822/d269581d10k.htm [Accessed: 5 Dec 2013]. Strategicmanagementinsight.com. 2013. SWOT Analysis - How to do it properly! | Strategic Management Insight. [online] Available at: http://www.strategicmanagementinsight.com/tools/swot-analysis-how-to-do-it.html [Accessed: 5 Dec 2013].
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